Specs cut gold bullish positions in week ended June 8 CFTC
Dollar hovers near oneweek high; Fed meeting on June 1516
June 14 Reuters Gold prices fell more than 1 on Monday, weighed down by a stronger dollar and easing concerns about inflation, while investors awaited cues from the U.S. Federal Reserves policy meeting due later this week.
Spot gold was down 1.1 to 1,856.30 per ounce by 0908 GMT, after hitting its lowest since May 19 at 1,854.39. U.S. gold futures fell 1.1 to 1,858.20.
Along with a stronger dollar, profittaking is weighing on the metal, said independent analyst Ross Norman, adding that the market was seeing a bit of book squaring ahead of the Feds June 1516 meeting.
What really matters is to what extent the Fed is going to be focusing on the immediate problem, which is likely inflation, or the longerterm problem, which is going to be tapering, Norman said.
The dollar was little changed after posting its biggest weekly rise in six weeks.
Last week, data showed a sharp rise in May U.S. consumer prices. But Fed officials have repeatedly said inflation would be transitory.
Gold is traditionally considered a hedge against inflation that may be triggered by widespread stimulus measures.
The Fed is expected to leave policy unchanged and again play down taper talk, ING analysts said in a note.
Nonetheless, markets will be looking for hints on whether the Fed is starting to acknowledge that inflation may not be as transitory as thought. A technical…